Trump aide claims tariffs will raise $6 trillion, boost US economy

He echoed the Trump administration's stance that the tariffs will not be paid by American consumers but by businesses in other countries or the countries themselves.

Peter Navarro, White House aide estimates that President Donald Trump’s tariffs are likely to bring $6 trillion in revenue in the next decade.

 

Navarro, a senior Trump counsellor for trade and manufacturing, claimed that the tax revenue from tariffs could be the largest tax hike in the history of America. Speaking to Fox News on Monday (IST), Navarro insisted that it is not a tax increase but a tax cut. He further noted, “The message is that tariffs are tax cuts, tariffs are jobs, tariffs are national security, tariffs are great for America. They will make America great again.”

 

He echoed the Trump administration’s stance that the tariffs will not be paid by US consumers but by businesses in other countries or the countries themselves.

 

However, according to a CNN report, many economists believe that the US-imposed tariffs are paid by the American consumers and businesses in the form of higher prices on imported goods, and not by foreign businesses.

 

Navarro’s statement comes at a time when the Trump administration is set to impose reciprocal tariffs on ‘all countries’ starting April 2, which he has dubbed ‘Liberation Day’ for the US. Previously, Trump announced tariffs on goods imported from China, Mexico, and Canada, along with 25 per cent tariffs on all auto imports.

 

He further mentioned that these tariffs will set the stage for tax cuts to be passed by the US Congress later this year.

 

US to raise $100 billion from auto tariffs 

Navarro claimed that the Trump administration will raise nearly $100 billion annually from auto tariffs alone. The CNN report suggests that the auto industry has been a major focus for the Trump administration in its effort to increase tariffs.

 

Trump’s aide further noted that the Trump administration plans to give tax credits to those who buy ‘American’ cars. He, however, did not clarify which car purchases would be eligible for a tax credit. Currently, no car built in the US auto assembly plant is made of only American parts, and most depend on imports for over half of their content.

 

Along with the 25 per cent tariffs on all imported cars, President Trump announced his plans for imposing additional tariffs on imported auto parts, which are used in every car built at an assembly plant in the US.

 

Navarro believes these tariffs will force the automakers to move their production to the US plants, thereby creating more jobs in the United States. However, experts and auto industry executives think it would take years to accomplish, if it happens at all. In the meantime, the auto jobs in the US could be lost.